Data Must Be Converted into Information to Be Considered Useful

question 15

Multiple Choice

Data must be converted into information to be considered useful and meaningful for decision making.There are seven characteristics that make information both useful and meaningful.If information is free from error or bias and accurately represents the events or activities of the organization,it is representative of the characteristic of

• A)relevancy.
• B)timeliness.
• C)understandability.
• D)reliability.

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Definitions:

Repurchase

The act of buying back shares of its own stock by a company, reducing the number of outstanding shares in the market.

Equity Financed

The practice of raising capital for a business through the sale of shares in the company.

Cost of Debt

The effective rate that a company pays on its current debt, which can include bank loans, bonds, and other forms of debt.

Repurchasing Shares

The act of a company buying back its own stocks from the marketplace, which can affect the company’s share price and equity structure.